Universal Service and Access Agency (USAASA) caretakers Sam Vilakazi and Themba Phiri, from the Department of Communications (DOC), were not at the agency when R4.7 million was used to illegally pay tax debts.
Democratic Alliance shadow communications minister Marian Shinn on Friday said communications minister Dina Pule must instigate criminal charges against officials who authorised the withdrawal of R4.7 million from the Universal Service and Access Fund (USAF) to pay USAASA's PAYE bill.
She explained that the auditor-general discovered the unlawful transfer from the fund to USAASA and this is recorded in the annual report for the year ended March 2012 as irregular expenditure. The AG clarified the sum was used for PAYE during a presentation on the DOC and its entities to the portfolio committee.
"The illegal transfer was not picked up by the two executive caretakers - directors-general Sam Vilakazi and Themba Phiri - who were appointed last November to oversee the administration of the entity when its executive management team was suspended at the start of a forensic investigation into financial mismanagement," said Shinn.
However, department spokesperson Siyabulela Qoza says the bill was paid before Phiri and Vilakazi were appointed at the agency.
Affordable access
"The transfer of R4 758 000 from the USAF is illegal in terms of the Public Finance Management Act because it was not authorised by the minister of finance. A similar transaction in the previous year led to the 'resignation' of the former chief financial officer, Keith Keys, for financial mismanagement," explained Shinn.
In terms of the Electronic Communications Act, the USAF receives funds from licensed telecommunications providers and broadcasters specifically to fulfil universal access obligations in under-serviced areas.
"Its priority project is the subsidy of set-top boxes that will enable poor households to receive digital television signals and other digital migration projects that support the vision of universal, affordable access to telecommunications services," added the shadow minister.
Enriching officials
USAASA came under fire at the recent Parliamentary Portfolio Committee meeting on communications for excessive salaries and bonuses paid to current top management in a year when 91% of its targets were not achieved, as per the AG's report.
"One also wonders why, if the majority of the entity's programmes were on hold because executive management was suspended, there were insufficient funds to pay PAYE dues to the receiver of revenue," said Shinn.
During the financial year, legal fees amounted to R1.1 million and overseas travel cost R682 000.
About 43% (R35.4 million) of the government allocation to USAASA (R83.1 million) was spent on staff costs.
"This is clearly an entity focused more on the enrichment of officials than the expansion of access to broadcasting and telecommunications," said Shinn.
The agency and the DOC did not respond to requests for comment by the time of publication.
USAASA received an unqualified audit opinion with several emphasis of matter. The first was for wasteful expenditure of R1.03 million on rental of offices not occupied, penalties and interest for late payments to SARS, and for an amount paid for a venue for a cancelled workshop.
The second was for irregular expenditure amounting to R42.1 million due to non-compliance with bidding processes as reported by the forensic audit.
Share